Consulting with the right professionals is often the first move by anybody new to the property development process. These professionals may be Buildings Designer’s, Town Planners, Engineers or Property Consultants. But it can also become immediately clear that collating the right information to make an educated decision can be a challenge. So having your own understanding of the process can allow you not only make your own assessment, but receive the information in an actionable way.
As with every development scenario, many factors should be considered. From planning constraints and feasibility to budget and market returns. Risk is an inherent factor in the property development process, and anyone who has successfully done it before will know that research, knowledge and strategy are key before making your move.
Considering Your Development Options
When considering your property development options, there are a number of solutions that may be a good fit for your Residential Property. For example: Demolition, Renovation & New Builds in the form of Townhouses, Units, Apartments etc, but also to be considered is Subdivision.
Let’s explore one of this option a little more in depth to see what costs are involved in subdividing a residential property in Brisbane.
There's a lot of factors and variables that dictate how much it can cost to subdivide a block of land in Brisbane. Here's a summary of major costs to keep in mind before taking on your own subdivision project;
1. Purchasing costs - This might seem obvious, but there's more to it than simply the contract price. You need to allow for stamp duty, legal costs and searches associated with purchasing a property in QLD.
2. Subdivision costs - Council infrastructure charges are just the beginning, there's a raft of other expenses you need to allow for including;
Town planning consultants
Development application fees
3. Holding costs - Don't forget things like insurance, council rates and interest incurred on any money borrowed are all expenses that need to be accounted for in a subdivision project.
4. Selling costs - The sale of any property costs money. Allow for agents commission, marketing and advertising costs and legal expenses.
So… What’s The Cost To Subdivide?
So what's a ballpark figure? It can range widely, but we recommend you budget $100,000 for a basic 1 into 2 subdivision in Brisbane.
While Subdivision is only ONE option for developing a residential property in Brisbane , it may prove to be the BEST option. And understanding the costs involved will be a major part of what you will use to determine this.
Hopefully this helps you start out on your property development journey, and best of luck to you.
If you would like any more help in assessing your residential property for development options don’t hesitate to contact us at email@example.com.